Investing - the U.S. Marine Corps way

Early training disciplines future investors

LOS ANGELES (CBS.MW) - Last year we wrote about a 42-year-old professional who was planning to retire a millionaire in fifteen years, and was well on the way. Recently he updated us on his progress (he's already got over $350,000!). What caught our attention most was a chance meeting in a health club with a Green Beret, the U.S. Army Special Forces.

A brief exchange. And yet, a powerful statement about the principles of successful investing. I'll explain more below, because this story made me reflect on how powerfully my own Marine Corps training of many decades ago still guides my investment strategy today. And I'm sure many of you know exactly what I'm talking about. Early training molds you. And still guides your investing today. And it could be from family, church, scouts, sports and teachers, as well as the military. Each of us has our own core values and principles molded in the past. First, here's Adam's chat with the Green Beret:

Lead, follow, or get out of the way

"He said the primary difference between Special Forces and regular Army was that Special Forces personnel where independent and creative. Trained to resist following orders blindly. Regular Army were just the opposite, trained to follow orders. Do this, do that. Attack that hill now, even if it was like Pickett's costly charge at Gettysburg. With Special Forces, he said, the order would be 'by 0500 tomorrow you've got to be on top of that hill over there, whether you sleep now and charge en mass later, infiltrate now and arrive later, or march left and attack right, the choice is yours. Just be there.' Adam."

What's this got to do with investing in mutual funds today? Everything. I volunteered at seventeen. Learned a lot. Seeing the Marine Corps Leadership Principles on their website recently made me realize how powerful an impact the Corps had. And still has today. Listen, feel the connection:

1. "Know yourself and seek self-improvement." In "How To Be Your Own Stock Broker," Charles Schwab wrote: "You don't need an MBA, not even a bachelor's in economics or business, to be a reasonably successful independent investor. But you do need the modest weekly application of your own time, perhaps an hour or two a day, at least at first. And you will need a great deal of common sense." Train, keep training, play the game.

2. "Be technically and tactically proficient." This principle sounds like something right out of Jack Schwager's "New Market Wizards," "Whether you win or lose, you are responsible for your own results. Even if you lost on your broker's tip, an advisory service recommendation, or a bad signal from the system you bought, you are responsible, because you made the decision to listen and act. Do your own thinking."

3. "Develop a sense of responsibility among your subordinates." Who? Everyone. Your broker, online or commissioned. You're the boss, not them. Fund managers. Executives at every company in your portfolio. All subordinates. Including your professional financial adviser. They know more about the market, stocks and funds than you. But, you're still responsible. They're all your subordinates.

4. "Make sound and timely decisions." Behavioral finance experts say 80 percent of your success is psychological, not technical. There's nothing mysterious about investing. Peter Lynch put it quite simply: "Think like an amateur. If you're a surfer, a truck driver, a high school dropout, or an eccentric retiree, then you've got an edge already." You decide.

5. "Set the example." You're the leader. Act like one. One area that's most relevant is in teaching children about finances. Most schools fail to teach kids about money. Ninety percent of what kids learn is from their parents. Parents, leaders set the example.

7. "Keep your Marines informed." One of the biggest headaches for any leader is communication. Yet teamwork demands it. When it comes to investing, make sure they know what you know. No surprises. Communicate.

8. "Seek responsibility and take responsibility for your actions." Does this principle really need explanation? Yes. All too often people blame someone or something else for their problems. Ultimately, you're responsible, no matter what. Take charge.

9. "Ensure assigned tasks are understood, supervised, and accomplished." Want to retire a millionaire? Get disciplined, goal-oriented. Make plans. Get into action. Then remember, life is a moving target. You get there, they move it. Like Special Forces. Accomplish the mission.

11. "Employ your command in accordance with its capabilities." For example, teach young children money principles they can grasp. With pros, demand each take full responsibility for their actions. Monitor. Evaluate. It's your money. Your future.

Before enlisting in the Marines, Scout principles and commandants guided me. Going back even further, Oprah Winfrey says: "You become what you believe - not what you wish or want but what you truly believe. Whatever you are in life, look at your beliefs. They put you there. I believed I belonged to someone or something bigger than myself, my family or even Mississippi. I believed I was God's child. Therefore, I could do anything."

You belong to something bigger. From birth. And your life is spent rediscovering the underlying principles, through various players -- Scouts, Marines, coaches, mentors, teachers, spouses, kids. It's in your genes. Your responsibility. Destiny. Money. Lead, follow, or get out of the way.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information.
All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
Intraday data delayed at least 15 minutes or per exchange requirements.